Insurance Co. of North America v. Hippert

511 A.2d 1365, 354 Pa. Super. 333, 1986 Pa. Super. LEXIS 11226
CourtSupreme Court of Pennsylvania
DecidedJune 16, 1986
Docket00346
StatusPublished
Cited by15 cases

This text of 511 A.2d 1365 (Insurance Co. of North America v. Hippert) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Insurance Co. of North America v. Hippert, 511 A.2d 1365, 354 Pa. Super. 333, 1986 Pa. Super. LEXIS 11226 (Pa. 1986).

Opinions

OLSZEWSKI, Judge:

This appeal comes before us as the result of the order of the Court of Common Pleas of Allegheny County, in which the motion for summary judgment made by appellee, Insurance Company of North America (INA), was granted and the motion for summary judgment made by appellant, Allstate Insurance Co., Inc. (Allstate), was denied. Accordingly, Allstate is to be held responsible for payments made to an accident victim even though it did not insure the victim or the vehicle involved but did insure another vehicle owned by appellee Judith Hippert. In the appeal sub judice, we are presented with a new and somewhat unusual factual situation involving the complex rules of the Pennsylvania No-fault Motor Vehicle Insurance Act (hereinafter the Act or No-fault Act).1 Once again, this Court must interpret [336]*336the intricate law in light of the applicable facts, most of which are undisputed. As with many no-fault insurance cases, this is no easy task.

We make note that this appeal is the result of a summary judgment. The law in this area is well settled. “Summary judgment is (proper) when the pleadings, depositions, answer to interrogatories, admissions on file and supporting affidavits considered together reveal no genuine issue as to any material fact and the moving party is entitled to a judgment as a matter of law. This severe disposition should only be granted in cases where the right is clear and free from doubt. To determine the absence of a genuine issue of fact, the court must take the view of the evidence most favorable to the non-moving party and any doubts must be resolved against the entry of judgment.” (citations omitted). Bowman v. Sears, Roebuck & Co., 245 Pa.Super. 530, 369 A.2d 754 (1976); Husak v. Berkel, Inc., 234 Pa.Super. 452, 341 A.2d 174 (1975).

The essential facts, to which the parties stipulated, are as follows:

1. Michael P. Hippert is the brother-in-law of defendant, Judith E. Hippert.
2. For a period of three to four months prior to June . 17, 1980, Michael P. Hippert resided with Judith E. Hip-pert, her husband and daughter at 100 Country Club Drive, Oakdale, Pennsylvania.
3. On June 17, 1980 Michael P. Hippert was injured while driving a 1974 Dodge truck owned by Judith E. Hippert.
4. Michael P. Hippert had Judith E. Hippert’s express or implied permission to operate her 1974 Dodge truck at the time of the accident on June 17, 1980.
5. At the time of the accident Michael P. Hippert was not the registered owner of a motor vehicle and was not identified by name as an insured in any other contract of insurance complying with the Act.
6. On August 7, 1980 Michael P. Hippert applied to the Pennsylvania Assigned Claims Plan for basic loss [337]*337benefits as a result of the injuries sustained by him in the accident on June 17, 1980.
7. Michael P. Hippert’s claim under the Pennsylvania Assigned Claims Plan was subsequently assigned to INA.
8. Pursuant to its obligation under Section 108 of the Act, INA paid basic loss benefits to or on behalf of Michael P. Hippert and incurred loss adjustment costs in the amount of $54,141.70.
9. The following payments and expenses incurred by INA were a direct result of Michael P. Hippert’s injuries suffered in the motor vehicle accident on June 17, 1980 and are reasonable in amount:
(a) Mercy Hospital in-patient from June 17, 1980 to July 11, 1980 $30,075.10
(b) Mercy Hospital in-patient from May 28, 1981 to May 30, 1981 1,096.05
(c) Three Rivers Orthopedic Associates, Inc. 3,366.00
(d) Pittsburgh Anesthesia Associates, Ltd. 1,354.50
(e) Ronald L. Boron, M.D. 865.00
(f) Stephen A. Lorenz, III, M.D. 4,155.00
(g) Lanza Pharmacy 190.00
(h) Work loss from June 17, 1980 to September 18, 1981 at $736.67 per month 11,250.05
(i) Loss Adjustment Cost 2,000.00
10. The amounts paid by INA on behalf of Michael P. Hippert set forth in No. 9 are “basic loss benefits” as such are defined in the Act.
11. On June 17, 1980 Allstate had in force and effect a policy of insurance for a 1977 Oldsmobile owned by Judith E. Hippert.

The specific subject of the instant appeal is an exclusion clause in the Allstate insurance policy, which reads:

This coverage DOES NOT APPLY TO BODILY INJURY TO:
(a) the NAMED INSURED or any RELATIVE resulting from the maintenance or use of the NAMED IN-

[338]*338SURED’S MOTOR VEHICLE which is NOT an INSURED MOTOR VEHICLE. (Emphasis in original). There are no Pennsylvania Supreme or Superior Court decisions determining the validity of this exclusionary clause. Several courts of common pleas have, however, dealt with this issue. Unfortunately, the various decisions are not in agreement and the reported cases conflict in their holdings. It is against this procedural backdrop that we must resolve the issue.

Appellant Allstate argues that the exclusionary clause relieves it of any liability for Michael Hippert’s accident since the 1974 Dodge truck involved was not the motor vehicle insured by the policy. Appellant also contends that the exclusion is valid and cites the clause’s approval by the Insurance Commissioner as support. INA, appellee, argues that the exclusion is contrary to the No-fault Insurance Act despite its approval and is therefore invalid. The lower court agreed; we do not.

We will immediately dispose of appellant’s reliance on the Insurance Commissioner’s approval of the exclusionary clause. This does not per se establish the validity of this provision despite the requirement that the forms must be approved before they can be used. See Insurance Company Law of 1921, as amended, 40 P.S.Sec. 477b. A court can determine that a challenged clause is void as being contrary to law, which then invalidates the approval as well. Brader v. Nationwide Mutual Insurance Company, 270 Pa.Super. 258, 411 A.2d 516 (1979); Wilbert v. Harleysville Mutual Insurance Co., 254 Pa.Super. 217, 385 A.2d 987 (1978). As such, the Commissioner’s approval cannot enter into our considerations.

In dealing with any statute, we must be mindful of its purpose.2 When the No-fault Act was enacted, the General Assembly declared as its purpose:

[339]

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Insurance Co. of North America v. Hippert
511 A.2d 1365 (Supreme Court of Pennsylvania, 1986)

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Bluebook (online)
511 A.2d 1365, 354 Pa. Super. 333, 1986 Pa. Super. LEXIS 11226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/insurance-co-of-north-america-v-hippert-pa-1986.